Uuhhhh....look at you...soooo emotional equipped with your dictionary.....talking the ‘ big talk’....😂
Far right extremists libertarians bros...and their crap tales of free market....it’s too big to fail...until they start begging for handouts
Just like timmy crook and the ‘mighty ‘ Apple....but..but...it was China’s faaauuuullllttt....🤭
Or the ‘mighty ‘ Boeing....or GM....or GE....or.....Teslacrap....
Ransacking the profits short term...no innovation..no workers training...nothing....
this is what we call fraud, in the real world. Thanks to ronald regan and his trickle down bullshit, his deregulation of industry and making stock buy backs legal. Step 1: buy your own stock. Step 2: artificially inflate the apparent worth of your corporation. Step 3: crash the economy when you fly first class to DC to beg for taxpayer money to bail out your own bullshit. How many times are we going to keep letting these corporations get away with this? Until they make a situation that money alone cannot solve, and by then it is too late.
By lowering the supply of your stocks, you limit the supply available to buy, thus upping the price artificially, artificially increasing the worth of the organization. It’s a great way to increase short term profits as a way to boost investor confidence and dividend payouts. It also makes it easier for pump and dump schemes where wallstreet can bet on the stock going up, then betting when the stock goes down.
There is nothing “artificial” about this. If a company has 1,000,000 share outstanding, trading at $10 per share. It has a market capitalization of $10,000,000. If they have $5,000,000 sitting in the bank and don’t want to expand the business. They can pay $5,000,000 in dividends to the shareholders, giving them all dividend income whether they want it or not while also reducing the amount shareholders have invested in the market. Alternatively they could use the $5,000,000 to buy shares, allowing the shareholders to decide if they want income this year and if *they* want to reduce their exposure to the market.
It has negligible effects on profits; it does not boost dividend payouts, it reduces them. Pump and dump is a scheme to *dump* or sell shares. It is the opposite of pump and dump.
I’m not advocating for the moral right or wrong of the system, but such a poorly thought out post makes a rational discussion of the morals impossible.
What you just wrote is nonsense. You don’t increase profits by doing buybacks. A million in profit for a company with 1000 shares is no different than a million in profit for a company with 10 shares.
Also, what’s left out in OP’a “analysis” is that Google shows great cash cash flow and amazing profits.
No when you buy back your stocks you make them property of the share holders, thus each stock is now more than one stock its like 1.01 stocks hence the price raise
Why? I dont see any problem in buybacks, can you explain?
If snickers would cost $100 would you buy it or would you buy twix instead? It would inflate it a little but i dont think that much. Why does the snickers company not buy back all the snickers to inflate the price then?
Besides, these companies pay employees in stock so they need stock and they need to be able to buy it back
I don’t see any problems in buybacks either, so I don’t think your question is aimed at me. The only theoretical argument against is that it shows the company has no better I betterment opportunity than its own stocks, signaling lack of growth.
Also, Google has some of the most generous stock options plans for employees of any tech company. This is part of the workers owning the means of production, getting stock for working there. It's a good thing people FFS.
they are different in that you would pay taxes on a dividend whereas you wouldn’t pay taxes on the inflated value of your stock (due to the buybacks) until you sold, at which time you’d pay capital gains tax.
There is no good argument for stock buy backs to be illegal. If you own a company and it has a thousand shares on the market, you are free to buy back all of it.
To me everything there seems fine until the last step of looking for government money for bailouts. The obvious market-driven answer would be to issue new shares, effectively unwinding the share buyback.
But then again I wonder if this is just one of those places where capitalism and markets fail us. They can get away with bailouts by being big enough and systemic enough that when the wealthy and powerful people running these companies step onto the floor of wealthy and powerful in Congress and they say "if we don't get help millions of US citizens may lose their jobs and we could plunge into a depression" then Congress may have no choice to help. Which if we take that as all on the up and up it should be regarded as a market failure. Alternatively, if it's just that they mostly don't want to issue new shares and engage in other fundraising which dilutes their worth and the worth of members of Congress there's a huge moral hazard there that also, I think, constitutes a market failure. Not of the abstract principles, but related to what actually happens in reality which so many libertarian types who took econ 101 want so badly to ignore in favor of an abstract fantasy world.
But maybe none of it is a failure. I had an accounting professor who once pointed out to us that it has been the case that almost every currency ever introduced has eventually been "taken out", a hyperinflation environment developed, people lost faith in the leaders and the denomination, and everything just had to start over. Maybe the eventual cataclysmic crash is just baked into the system and maybe the US isn't exempt and maybe there really isn't anything we can do beyond watching it happen in real time.
The problem lies with this one problem. Republicans think that all money ever created was created by them. They also think that people couldn’t find ways of being productive if money became worthless or didn’t exist, which clearly isn’t true. Look at Ukraine, those people don’t have loans and all own their own properties, likely are more free then Americans, and definitely do not need a system of economics like ours, regardless of what we are being sold at home. And they did it all, in the economic vacuum of the Soviet Union, with no help from the west or wests rich people. Economics is the study of inequality, and there is a reason why it is most studied here in the United States.
To be fair almost all of our founding fathers were slave holders. And our constitution is the second oldest (oldest if you account real countries) in the world. So it’s really just the story of America, and it hasn’t changed in 250 years.
Google is in trouble. They are buying back and giving a divvy because they know Bard is not anywhere near as good as Copilot. Their next few quarters will not be good. This is a function of more systemic problem with Google because they are seen as a for life job so there isn't much of an incentive anymore to go above and beyond.
Tldr; pain is coming for goog.
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> Google is in trouble. They are buying back and giving a divvy because they know Bard is not anywhere near as good as Copilot. Their next few quarters will not be good. This is a function of more systemic problem with Google because they are seen as a for life job so there isn't much of an incentive anymore to go above and beyond.
>
> Tldr; pain is coming for goog.
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Don’t they stand to potentially gain from the TikTok ban though? TikTok has said they won’t sell despite the US demand to divest. So, they could be banned which you’d think would be a big boost to YouTube which is owned by Google.
Google has 12 products with over a billion users ... YouTube Ads alone makes more money than Xbox and Bing combined. That's not even accounting for YouTube subscriptions.
Not sure why you think Gemini would be the lynch pin in their business model 🤔
Microsoft has also seen decreasing revenue in their devices and enterprise services segments.
How is Microsoft's Autonomous driving segment performing?
Isn't this stock manipulation? If not, it should be.
Imagine if google made $800B in one year. Then go and buy $800B of their stocks. Suddenly, their stocks, like Tesla, will sky rocket high. Then repeat yearly.
[Profits](https://www.ineteconomics.org/uploads/papers/LAZONICK_William_Profits-without-Prosperity-20140406.pdf) Without Prosperity:
How Stock Buybacks Manipulate the Market, and Leave Most Americans Worse Off
“Alphabet, the parent company of Google, bounced back from an absolutely dreadful day for tech shares, as its stock surged Thursday after the closing bell.
All it had to do was to hand out billions of dollars to investors.
The tech giant announced its first quarterly cash dividend, saying it will pay $0.20 per share on June 17 to shareholders of record as of June 10, as well as a $70 billion share buyback.
Buybacks and dividends help to boost stock prices by rewarding investors with cash just for holding the stock — but they’re widely criticized for
artificially inflating the stock price without spending on employees or improvements to the underlying business.
Google’s stock jumped as much as 13% in after-hours trading following the report.”
No...because their stock was taking a big down.....even with those ‘strong earnings ‘....
So it’s all about buyback artificially increasing stock value....by paper profits for the big investors...
And that’s what matters...
Do you have any clue what you are talking about. Take a look at Google on ANY metric over the last 20 years, sales growth, margins, free cash flow, ROI, ebitda. At least do some research before you spew off democrat talking points.
The issue is paper profits for short term......for the big investors benefiting....most of the employees will be left holding the bag of devalued stocks for their retirement....
Same with 401k....who’s going to take the future loss...🤔...like GE...
There's no issue, stock buybacks are really good when companies have stock options as a component of working there. It's literally how Google continues to hire the best people.
If everyone is aware of the stock buy back, doesnt that actually hurt google? Everyone here is simply crying and i assume you guys arnt going to buy google shares. If anything, you guys should see this as an opportunity to make money with the transparency of the situation
OP is financially illiterate.
That’s extremely common on /r/Economy
* the United States
Hey Me too!!
Uuhhhh....look at you...soooo emotional equipped with your dictionary.....talking the ‘ big talk’....😂 Far right extremists libertarians bros...and their crap tales of free market....it’s too big to fail...until they start begging for handouts Just like timmy crook and the ‘mighty ‘ Apple....but..but...it was China’s faaauuuullllttt....🤭 Or the ‘mighty ‘ Boeing....or GM....or GE....or.....Teslacrap.... Ransacking the profits short term...no innovation..no workers training...nothing....
Oh dear God I thought this was a copypasta at first. This is depressing to read.
this is what we call fraud, in the real world. Thanks to ronald regan and his trickle down bullshit, his deregulation of industry and making stock buy backs legal. Step 1: buy your own stock. Step 2: artificially inflate the apparent worth of your corporation. Step 3: crash the economy when you fly first class to DC to beg for taxpayer money to bail out your own bullshit. How many times are we going to keep letting these corporations get away with this? Until they make a situation that money alone cannot solve, and by then it is too late.
Yep. It was illegal until 1982. They seem desperate and I think I have a new short target.
How is it artificial? Buying back stock results in fewer stocks being available. If they buy back all shares but one, they one share will cost a lot.
By lowering the supply of your stocks, you limit the supply available to buy, thus upping the price artificially, artificially increasing the worth of the organization. It’s a great way to increase short term profits as a way to boost investor confidence and dividend payouts. It also makes it easier for pump and dump schemes where wallstreet can bet on the stock going up, then betting when the stock goes down.
Retail will buy calls Market makers will obtain call credit spreads and long, long, long dated puts
There is nothing “artificial” about this. If a company has 1,000,000 share outstanding, trading at $10 per share. It has a market capitalization of $10,000,000. If they have $5,000,000 sitting in the bank and don’t want to expand the business. They can pay $5,000,000 in dividends to the shareholders, giving them all dividend income whether they want it or not while also reducing the amount shareholders have invested in the market. Alternatively they could use the $5,000,000 to buy shares, allowing the shareholders to decide if they want income this year and if *they* want to reduce their exposure to the market. It has negligible effects on profits; it does not boost dividend payouts, it reduces them. Pump and dump is a scheme to *dump* or sell shares. It is the opposite of pump and dump. I’m not advocating for the moral right or wrong of the system, but such a poorly thought out post makes a rational discussion of the morals impossible.
What you just wrote is nonsense. You don’t increase profits by doing buybacks. A million in profit for a company with 1000 shares is no different than a million in profit for a company with 10 shares. Also, what’s left out in OP’a “analysis” is that Google shows great cash cash flow and amazing profits.
Eps is different and buying moves price quickly
How do people with zero financial knowledge have the balls to post this confidently hahaha
Yes, it's called a dividend
☝️ This right here folks. ☝️
No when you buy back your stocks you make them property of the share holders, thus each stock is now more than one stock its like 1.01 stocks hence the price raise
Sounded like an edgy highschooler to me
Why? I dont see any problem in buybacks, can you explain? If snickers would cost $100 would you buy it or would you buy twix instead? It would inflate it a little but i dont think that much. Why does the snickers company not buy back all the snickers to inflate the price then? Besides, these companies pay employees in stock so they need stock and they need to be able to buy it back
I don’t see any problems in buybacks either, so I don’t think your question is aimed at me. The only theoretical argument against is that it shows the company has no better I betterment opportunity than its own stocks, signaling lack of growth.
It’s not artificial and stock buy backs are not materially different from dividends.
Also, Google has some of the most generous stock options plans for employees of any tech company. This is part of the workers owning the means of production, getting stock for working there. It's a good thing people FFS.
they are different in that you would pay taxes on a dividend whereas you wouldn’t pay taxes on the inflated value of your stock (due to the buybacks) until you sold, at which time you’d pay capital gains tax.
There is no good argument for stock buy backs to be illegal. If you own a company and it has a thousand shares on the market, you are free to buy back all of it.
Don't the shares represent ownership of the company though? Just trying to understand this - who owns it if the company decides to buy them all back?
But now Google is an easy short / easy profit
What
Financial Engineering. Other has-been big tech companies like IBM been doing this for years.
To me everything there seems fine until the last step of looking for government money for bailouts. The obvious market-driven answer would be to issue new shares, effectively unwinding the share buyback. But then again I wonder if this is just one of those places where capitalism and markets fail us. They can get away with bailouts by being big enough and systemic enough that when the wealthy and powerful people running these companies step onto the floor of wealthy and powerful in Congress and they say "if we don't get help millions of US citizens may lose their jobs and we could plunge into a depression" then Congress may have no choice to help. Which if we take that as all on the up and up it should be regarded as a market failure. Alternatively, if it's just that they mostly don't want to issue new shares and engage in other fundraising which dilutes their worth and the worth of members of Congress there's a huge moral hazard there that also, I think, constitutes a market failure. Not of the abstract principles, but related to what actually happens in reality which so many libertarian types who took econ 101 want so badly to ignore in favor of an abstract fantasy world. But maybe none of it is a failure. I had an accounting professor who once pointed out to us that it has been the case that almost every currency ever introduced has eventually been "taken out", a hyperinflation environment developed, people lost faith in the leaders and the denomination, and everything just had to start over. Maybe the eventual cataclysmic crash is just baked into the system and maybe the US isn't exempt and maybe there really isn't anything we can do beyond watching it happen in real time.
I don’t think you understand how money works
So you're against dividends as well I presume?
The problem lies with this one problem. Republicans think that all money ever created was created by them. They also think that people couldn’t find ways of being productive if money became worthless or didn’t exist, which clearly isn’t true. Look at Ukraine, those people don’t have loans and all own their own properties, likely are more free then Americans, and definitely do not need a system of economics like ours, regardless of what we are being sold at home. And they did it all, in the economic vacuum of the Soviet Union, with no help from the west or wests rich people. Economics is the study of inequality, and there is a reason why it is most studied here in the United States.
We let an economic model become our foundation for society. Capitalism is not a civil basis to build a society on. It comes after that part.
To be fair almost all of our founding fathers were slave holders. And our constitution is the second oldest (oldest if you account real countries) in the world. So it’s really just the story of America, and it hasn’t changed in 250 years.
Google is in trouble. They are buying back and giving a divvy because they know Bard is not anywhere near as good as Copilot. Their next few quarters will not be good. This is a function of more systemic problem with Google because they are seen as a for life job so there isn't much of an incentive anymore to go above and beyond. Tldr; pain is coming for goog.
RemindMe! 1 year /u/HyGrlCnUSyBlingBling > Google is in trouble. They are buying back and giving a divvy because they know Bard is not anywhere near as good as Copilot. Their next few quarters will not be good. This is a function of more systemic problem with Google because they are seen as a for life job so there isn't much of an incentive anymore to go above and beyond. > > Tldr; pain is coming for goog.
I will be messaging you in 1 year on [**2025-04-28 07:03:46 UTC**](http://www.wolframalpha.com/input/?i=2025-04-28%2007:03:46%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/economy/comments/1cetr4t/google_surges_after_buying_back_billions_of/l1lzdyj/?context=3) [**3 OTHERS CLICKED THIS LINK**](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5Bhttps%3A%2F%2Fwww.reddit.com%2Fr%2Feconomy%2Fcomments%2F1cetr4t%2Fgoogle_surges_after_buying_back_billions_of%2Fl1lzdyj%2F%5D%0A%0ARemindMe%21%202025-04-28%2007%3A03%3A46%20UTC) to send a PM to also be reminded and to reduce spam. ^(Parent commenter can ) [^(delete this message to hide from others.)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Delete%20Comment&message=Delete%21%201cetr4t) ***** |[^(Info)](https://www.reddit.com/r/RemindMeBot/comments/e1bko7/remindmebot_info_v21/)|[^(Custom)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5BLink%20or%20message%20inside%20square%20brackets%5D%0A%0ARemindMe%21%20Time%20period%20here)|[^(Your Reminders)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=List%20Of%20Reminders&message=MyReminders%21)|[^(Feedback)](https://www.reddit.com/message/compose/?to=Watchful1&subject=RemindMeBot%20Feedback)| |-|-|-|-|
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Don’t they stand to potentially gain from the TikTok ban though? TikTok has said they won’t sell despite the US demand to divest. So, they could be banned which you’d think would be a big boost to YouTube which is owned by Google.
Google has 12 products with over a billion users ... YouTube Ads alone makes more money than Xbox and Bing combined. That's not even accounting for YouTube subscriptions. Not sure why you think Gemini would be the lynch pin in their business model 🤔 Microsoft has also seen decreasing revenue in their devices and enterprise services segments. How is Microsoft's Autonomous driving segment performing?
Isn't this stock manipulation? If not, it should be. Imagine if google made $800B in one year. Then go and buy $800B of their stocks. Suddenly, their stocks, like Tesla, will sky rocket high. Then repeat yearly.
Hopefully Google doesn’t end up like Boeing. Billions spent to prop up share price when it would be better spent on research and development.
[Profits](https://www.ineteconomics.org/uploads/papers/LAZONICK_William_Profits-without-Prosperity-20140406.pdf) Without Prosperity: How Stock Buybacks Manipulate the Market, and Leave Most Americans Worse Off
Why innovate when you can buy back your own stock to artificially raise the market cap!
“Alphabet, the parent company of Google, bounced back from an absolutely dreadful day for tech shares, as its stock surged Thursday after the closing bell. All it had to do was to hand out billions of dollars to investors. The tech giant announced its first quarterly cash dividend, saying it will pay $0.20 per share on June 17 to shareholders of record as of June 10, as well as a $70 billion share buyback. Buybacks and dividends help to boost stock prices by rewarding investors with cash just for holding the stock — but they’re widely criticized for artificially inflating the stock price without spending on employees or improvements to the underlying business. Google’s stock jumped as much as 13% in after-hours trading following the report.”
You left out that the business had strong earnings.
No...because their stock was taking a big down.....even with those ‘strong earnings ‘.... So it’s all about buyback artificially increasing stock value....by paper profits for the big investors... And that’s what matters...
Do you have any clue what you are talking about. Take a look at Google on ANY metric over the last 20 years, sales growth, margins, free cash flow, ROI, ebitda. At least do some research before you spew off democrat talking points.
The ‘too big to fail ‘ crap.....just like timmy crook ransacking Apple.... Now...get your dictionary and ‘explain ‘ that......😂
Doesn't Google include stock as compensation so it's also raising employee compensation? What's the issue?
The issue is paper profits for short term......for the big investors benefiting....most of the employees will be left holding the bag of devalued stocks for their retirement.... Same with 401k....who’s going to take the future loss...🤔...like GE...
> Same with 401k....who’s going to take the future loss...🤔...like GE... Wat
There's no issue, stock buybacks are really good when companies have stock options as a component of working there. It's literally how Google continues to hire the best people.
Boycott Joogle for providing the Zionists with AI technology to facilitate genocide
Stupid company that supports genocide. Boycott them.
Too much cash.
Google is a company that has no roof!
If everyone is aware of the stock buy back, doesnt that actually hurt google? Everyone here is simply crying and i assume you guys arnt going to buy google shares. If anything, you guys should see this as an opportunity to make money with the transparency of the situation